Digicel’s credit rating slashed after debt restructuring announcement

Bondholders retain Washington DC legal firm to represent them ahead of deadline, Digicel has over $6 billion in borrowings with revenue and profits under pressure

Denis O’Brien, the telecoms tycoon and owner of Digicel Picture: Ken Lennox

The credit ratings agency Fitch has said plans by Denis O’Brien’s Digicel to extend the repayment date on some if its debt will result in higher borrowing costs for the company.

Fitch has slashed its credit ratings on Digicel’s bonds following the announcement of a proposed swapping of $3 billion of debt for new securities.

“Management’s exchange proposal reflects the company’s willingness to restructure its financial debt rather than seeking additional equity or ...